The market for routing and transport planning: what to expect in the coming years

The global market for routing and transport management solutions is at a turning point. On the one hand, it is being hit by the corona crisis and political upheavals. On the other hand, crises and shocks hit supply chains of bottled and jarred packaged goods, which means they generate demand for new digital logistics solutions.

Modern routing and scheduling services just like offer operators multi-level, integrated control over the fleet and the entire supply chain. This routing software is a very desirable tool for businesses that are logistics-oriented but face volatility on a daily basis (manufacturing, eCommerce, retail). It provides a number of benefits:

  • saving fuel and technical resources
  • efficient routing
  • optimal load distribution for drivers
  • real-time monitoring of movement and state of transport

According to the Grand Research Store, in 2021 the global market for such solutions amounted to $185.25 million, and will grow at an average annual rate of about 9% over the next five years. The main growth factors will be the rapid development of the Internet of things and investments in countries that are developing.

Interest in routing and scheduling software is fueled by coronavirus lockdowns and the war in Ukraine. Each such shock is a test for the logistics system, which requires new approaches and tools.

The market of routing systems in Ukraine

The Ukrainian transport sector has long lagged behind the best global trends in terms of digitalization. The modernization of Ukrainian logistics is seriously hampered by fierce competition, outdated infrastructure, legislative difficulties and skepticism towards innovation.

According to a study by the CFTS and Deloitte dedicated to the digitalization of the transport business in Ukraine, half of the participants in this market rate their level of digitalization at “3 out of 5”. That is, it uses only basic tools and point solutions in its processes.

However, the war showed the vulnerability of the Ukrainian logistics system – there were interruptions in the supply of food and medicine on the ground, and the Minister of Infrastructure of Ukraine Oleksandr Kubrakov announced that “a flexible logistics system that quickly responds to external threats” is being formed in the country.

Investment in new logistics solutions is likely to become a high priority for many Ukrainian companies in the post-war period. In the future up to five years, the Ukrainian market of transport routing systems will grow at the level of the best world trends, or even outpace them.

Developer’s Choice

Creating a fleet management or logistics management platform can be a technically complex and expensive task. It includes the creation of a single database, a monitoring system based on the Internet of things and a digital dispatch hub. But as experience shows, with a competent approach, investments in such a system quickly pay off. The main thing is not to miscalculate with the choice of the development team.

The Ukrainian IT company WEZOM can share many successful cases of digitalization of logistics – both for Ukrainian and Western markets. You can read more about us on our website We develop software for businesses and startups, help to digitize workflows, build digital commerce. Contact us! Let’s take your business to the next level.

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